Macy’s Inc forecast full-year profit largely above Wall Street estimates on Thursday, as the department store operator looks to cut back on promotions to protect its margins.
Shares of the company rose about 7 percent in premarket trading.
The company said it expects adjusted full-year profit per share between $3.67 and $4.11, while analysts on an average had estimated $3.84, according to IBES data from Refinitiv.
Macy’s sees 2023 sales between $23.7 billion and $24.2 billion, compared to estimates of $24.29 billion.
Consumers at the higher end of the income rung have shrugged off a hit to savings from stubbornly high inflation, helping boost sales at department stores like Macy’s that mostly offer luxury and discretionary items.
However, peer Kohl’s Corp, which caters more to inflation-hit lower-income customers posted a surprise quarterly loss and forecast full-year profit well below estimates as deep discounts to boost demand shredded the retailer’s margins.
By Ananya Mariam Rajesh and Anne Florentyna Gnanaraja Sekar; Editors: Anil D’Silva and Saumyadeb Chakrabarty
Macy’s Lifts Profit Outlook as Special Occasions Boost Sales
Macy’s Inc. jumped after raising its profit forecast as demand for high-end goods is persisting despite the highest inflation in four decades.
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